Top Utilities Equity Funds

Today we are featuring top-performing "utilities" equity mutual funds that invest in utilities securities, including those of telephone or cable-television companies.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Utilities Equity Funds list.

3 Electrifying Picks

Federated Capital Income A (CAPAX) seeks to provide investors with current income and long-term growth of income. Capital appreciation is a secondary objective.

The fund invests primarily in income-producing stocks and bonds. It focuses on common stocks that pay dividends and a variety of bonds with high current yields. The fund declares and pays dividends monthly to shareholders. Capital gains, if any, are distributed annually.

The fund's top holdings include AT&T Inc. (T - Analyst Report), Chevron Corp. (CVX - Analyst Report) and ExxonMobil Corp. (XOM - Analyst Report).

Gabelli Utilities A (GAUAX) seeks to provide a high level of total return through a combination of capital appreciation and current income. It intends to take advantage of trends in regulation and consolidation within the utilities industries.

The fund invests at least 80% of its net assets in securities of companies that provide products, services or equipment for the generation or distribution of electricity, gas and water and the provision of infrastructure operations or telecommunications services.

National Fuel Gas Co. (NFG - Snapshot Report), FPL Group (FPL - Snapshot Report) and Westar Energy Inc. (WR - Snapshot Report).

Evergreen Utility & Telecomm A (EVUAX) seeks high current income and moderate capital growth. It is non-diversified.

The fund normally invests at least 80% of its assets in common, preferred, convertible preferred stocks and investment grade bonds or convertible debentures of utility (water, gas, electric) and telecommunications companies. Unit holders have make a minimum initial investment of $1,000 to enter this Zacks#1 Rank ("Strong Buy") fund.

CMS Energy Corp. (CMS - Snapshot Report), Pepco Holdings Inc. (POM - Snapshot Report) and Visa Inc. (V - Snapshot Report) are among key holding at the fund.

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